Educational technology startup Quizac has announced its closure, just months after turning down a $250,000 investment offer. The company, founded in 2021, aimed to revolutionize learning through interactive quizzes but faced numerous challenges that ultimately led to its demise.
Quizac initially gained popularity among students and educators for its user-friendly platform. However, the startup struggled to monetize its core audience effectively. Despite charging schools ₦85,000 annually for premium services, acquisition costs often exceeded ₦100,000 per school.
A pivot towards corporate clients showed promise, with businesses willing to pay up to ₦500,000 quarterly for employee engagement tools. However, this shift came too late to save the company.
In 2022, Quizac received a term sheet valuing the company at $1.7 million, which the founders declined due to unfavorable terms. They hoped to improve their position and make a counteroffer, but global economic shifts led to a downturn in venture capital investments.
Tade Samson, Co-founder and CEO, cited financial constraints as the primary cause of Quizac’s downfall. The self-funded startup generated just over ₦7 million in revenue throughout its lifecycle, far short of sustainability.
Personal factors also played a role, as founders married or relocated, necessitating more stable incomes. This led to divided attention between regular jobs and the startup, with Quizac often receiving less focus.
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Infrastructure challenges for students, their largest user base, further complicated matters. Schools began demanding offline functionality, which the team was reluctant to develop due to resource constraints.
Despite the setback, Samson remains optimistic about future ventures, emphasizing the importance of a stronger financial foundation and negotiation position with investors.
Quizac’s story serves as a cautionary tale for aspiring entrepreneurs, highlighting the delicate balance between maintaining independence and securing necessary funding in the competitive startup landscape.
